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Good afternoon, well after 5 full years of silence from SN: it has taken Deloitte, a well respected professional company now in charge of FRC, just days to respond.
It may have taken a court to remove SN and the board, but hopefully we may now start get some answers as to what has happened to our investment and our rights to the lucrative PSA.
Deloitte are clealy now in the driving seat, a positive reply and I'll message more later...
Interested...
I maybe the most unusual FRR shareholder who drifted into the AIM Market in
ignorance . I would be delighted to come forward . HL holds my shares and is
best qualified to explain.
Part 1.
I mentioned that I have reached out to Deloitte, because I believe the parent company that I invested in FRC is now in liquidation. A court has removed SN from any control. Some on here will say its part of a grand plan, but I personally have nothing to base that on.
Since FRC was delisted 5 year ago, I haven't heard a dickie bird, and I have no idea where my investment is. It appears that SN has transferred all the rights to produce the hydrocarbons from block 12 into the company Frontera Resources US LLC. Which I mistakenly thought was owned and controlled by FRC (the parent company).
Despite its long standing history, SN has now abandoned the parent company, and some how kept FRUS LLC out of the group structure. This significantly worries me. I don't see how he can legally do this, other than selling it off for fair value. If you could simply move all your assets out of reach, all companies would surely do this to avoid their debt.
Most importantly, who now has the shareholder rights to FRUS LLC. Despite some on here being very close to the action, they will not say! Yes, they paint a picture that SN will look after shareholders, but there is nothing direct from him, and nothing to fall back on legally. SN has ignored all emails, not even a simple acknowledgement. Why? It cannot be to hide the asset from his competitors, as this was all discussed at the arbitration and Looed has now openly confirmed that the asset is now safe.
If the asset has been removed from the parent company illegally or sold off significantly undervalued, then there would be a significant advantage to those that have done this if shareholders stayed quie. Let the parent company FRC, where we put our investment be wound up without a fuss.
The simple position for me is this. I invested in FRC, which helped develop the commercial discovery of Block 12. The rights to that discovery, I was led to believe were owned and controlled ultimately by the parent company FRC via the subsidiary FRUS.
FRUS now appears to have been removed from that group structure, not to dissimilar from Zaza wanting to sell/transfer the rights to Green Capital. How has SN done this?
The courts have now removed SN from the board and control of FRC, and they have appointed Deloitte to investigate the company. They will trace and recover assets. Plus, they have a duty to identify and report any misconduct or criminal behaviour by the board if they identify any.
Part 2.
It would be a serious misgiving of myself, if I assumed my investment has been taken care of by SN. I have no evidence of this. My investment was in FRC, now controlled by Deloitte. Therefore, my reason for reaching out to Deloitte who are now in charge of FRC is as follows:
1. They are a respectable global company, and they have responded to me saying they will look into my concerns.
2. I wanted to let them know I'm a shareholder. This is important as a member of the company, I can ask questions about my investment and raise any concerns I have. I hope to also see the investigators report.
3. SN and the board will have to sign declarations of truth. Such statements are treated very seriously by the courts. If facts are concealed or omitted, then this needs to come to light. This is why its important that background information and known facts are shared with investigators.
4. Whilst I may not get anything back. If I have been done over, then I want to know about it. Staying silent won't achieve this. It will all be conveniently wrapped up quietly, and it will be too late.
5. If the investigator is successful at recovering any assets or rights to block 12, then I am at least in the pot for any distributions. Even if that's at the back of the queue.
6. Lastly, if there has been anything dodgy going on, then having the investigators report will be crucial to reporting this to the authorities and perhaps seeking compensation.
I know some on here have said, don't bother or it will all come good. I don't accept that. Who's to say those pushing that strategy don't already have their interest in the new FRUS. Stay stum and here's a golden handshake. I have had to trust my own instincts, others will need to draw their own conclusions and I am not providing advice.
On the flip side, if everything has been done above board, then there should be nothing to see and nothing to lose. The investigators will do there job, and theybwill be able to tell us in the absence of SN what has happened to our investment. However, it's a sad fact, but many victims of fraud do not know they are, they convince themselves it will come good eventually.
Following my email to Deloitte, they have responded quickly and positively. They have already set up a direct email to the insolvency team, who appear happy to hear from genuine shareholders and assist with our quieries. You can ask questions about your investment or share your concerns about the company or the way it has run. For those that want to do this, the email I've received directly from the team is from: frcliquidation@deloitte.com.
Tenners,
Your point 4, states you may not get anything back?
Then after your huge update from yourself, we get the last small paragraph stating they are happy to receive emails, was this an automated Deloitte response ? Or do you have a named response i.e “regards from ??.
We get why you want to know, we REAL holders want the same, you claimed earlier it was a positive reply, can you elaborate on this? Or is that it.?
A positive reply to me would be your shares aren’t in FRC!
Well done though as at least you’re trying to find out.
Am back sitting and waiting on Looed, Jim or even your good self now you have put yourself in the mix on info coming our way.
GLA real holders
A superb post Tenners! I agree with each and every point you make exactly. You were right in contacting Deloitte to find out and we were right that they would be far more open with us than SN, FRR, etc ever was.
There is a lot of information you have gained here and that is a big positive. We now know for sure the rights to the hydrocarbons, block 12, etc were transferred to FRUS and not only that but that FRUS is (now) a separate company from FRC.
So where are we as shareholders, it looks like Deloitte will be able to provide the answers once they find out more. That they have been appointed Liquidators by the Court in the Caymans suggests to me that it could be because a lot of wrongdoings are suspected.
As said yesterday I think potentially SN might be playing for time to get some money in and then pay off the Creditors as surely he must know that if he is trying to pull a fast one it ultimately won't work in the end and he will be caught up with.
I definitely think it is a good idea to learn all we can from Deloitte to be better informed. Once we are better informed we may get a very clear idea of what exactly is going on. If needs be we may even be able to have sway to help matters in our favour. If it turns out we may be better off with the company continuing then we might be better off with Shareholders making a further investment to raise the funds to pay off the Creditors or possibly the Creditors taking an investment share in the company in lieu of the money they are owed. If they know shareholders are interested then it may be possible to hammer out a deal to save the company for everyone's benefit. Who knows but I definitely think we have more to gain by showing interest and learning what Deloitte discover. Well done Tenners! :)
Lifeishard, it is not an automated response. It is from named people of their team.
Phil_2018, there is a lot of info gained here?An email address from Deloitte, or have I missed something again? It has been known
Tenners,
Is it possible you tell us all your info or are you keeping this to your chest??
Can you advise what you asked so we real holders might see something you haven’t asked, then we can email said person ( as yet name not known ) and ask them??
GLA real holders
My further thoughts on this is as Looed said the other day the Licence Agreement the GOGC signed with FRC has expired and a MOU signed between the GOGC and FRUS. Is SN/GOGC treating that as a separate agreement with a separate company (i.e FRUS) to that of the agreement with FRC? I wouldn't mind betting that may be the case, that SN is treating it as FRUS being a separate venture with the GOGC. That of course would be a conflict of interest as he has not done right by us as shareholders of FRC, unless he has given us the same shareholding in FRUS in its stead to alleviate that. However the situation would still remain that the Creditors of FRC would no doubt see this as foul play and likely Deloitte/the Courts also. I doubt that is an above board move and there would likely be follow up there, moreso if us as Shareholders have not been given our equivalent shareholding in FRUS due to conflict of interest even fraudulent activities.
Possibly SN, etc may have convinced themselves that it is an above board dealing but I doubt Deloitte/the Courts will see it that way. All still more to find out on this me thinks. Handy that we now have Deloitte to uncover a lot of answers for us. Is there any way to see who the shareholders are of FRUS are in the US?
Lifeishard... its not complicated. The email address is at the bottom of my post.
@Phil_2018 -- you can't find out the owners of FRUS from public filings, but the directors are same as FRC--SN, Tyler Nelson and Luis Giusti.
Try reading his post again, before commenting and removing any doubt
I bet you we are not included in FRUS and SN is waiting for FRC to be closed down by the Liquidators with us being in the dark (in the closet, lol) with them telling us the 'progress is being made' (probably not in our favour though) that we just need to sit quiet in the dark a little longer so FRC can be wrapped up and us left with little recourse accept this time ourselves being part of a long drawn out court case trying to bring a case against SN, etc. I may be wrong but that is just what my senses are telling me at the moment.
Essentially that SN waited for the Licence Agreement to expire so then he could claim that the agreement had lapsed so he could legally sign a MOU with the GOGC with FRUS as FRC had no signed up interest since the License had expired. Of course it all gets made a bit easier for him once FRC gets wound up and if shareholders keep themselves in the dark while that happens that makes it easy for him. If Shareholders communicate with the Liquidators even if FRC end up continuing in some way that may raise problems for SN's plans with FRUS. While I would like to believe SN is not attempting to leave us high and dry I fear that may be the case. It may be that we end up with a lucky straw with Deloitte being assigned to the case and having his spoken up all hope might possibly not all be lost. Let's see what next comes out of the woodwork.
Lifeishard, there might not seem to be a lot of info on the face if it that Tenners has put but in reality if you read through it carefully there are many snippets of small but telling info that tells us a lot already. I would be interested to hear what Looed makes of the info Tenners has received?
Tenners
Thanks for your post .Have to say though that after your teaser earlier to day I feel a bit flat .
There is nothing in what you have posted re the liquidators response than standard practise .
What is the new’s ?
You say ….You can ask questions about your investment …Yes agree, you can email as many questions as you want I don’t doubt
Have you asked any specific questions over and above the process they undertake?…… what was their response ?
Tenners, most of your email comes across to myself the dopey as just your thoughts written for us on this board.? A pretty standard reply that you even seem to answer yourself stating you may not get a response??
Sorry Goit, fill me in as I have removed doubt???
Phil
You say in your response to LIH
Lifeishard, there might not seem to be a lot of info on the face if it that Tenners has put but in reality if you read through it carefully there are many snippets of small but telling info that tells us a lot already.
Really not sure what you are getting at .
Is it Tenners thoughts on the matter you are referring to ?
or
Specific …..NEW….info / facts contained in his post ?
If the latter , they have gone over my head , please enlighten me .
What you laid out is my belief though I don't believe SN is working against shareholder interests. Looed or Slade messages from company indicated what they are doing will either work for all or for none.
The choices are:
1. The prospective new license resides in FRC (via FRUS as a subsidiary). It cannot be "redeemed" without paying the Georgians 4 or 5 million dollars. Don't recall exact amount. Creditors are owed unknown millions. Between Mourant and YA alone is about $5 million. Who knows how many other creditors are out there? The company has no money to satisfy any of these amounts. No new money wants to come in having to pay off the creditors AND the Georgians to get this out of hock. Therefore, if left within FRC, the new license is never awarded and no one gets anything.
2. The prospective new license resides in FRUS as an independent company. Any new investment coming in only has to pay the Georgians to get the license awarded. The rest can be for drilling and exploration, not creditors. Old shareholders have to trust SN and the owners of FRUS to issue shares to give them a stake in the new venture. Any new investment will get the bulk of the equity ownership, but at least old shareholders will have something. This way they can also choose to exclude bad actors like ZM. I'm guessing Hope will have a large stake as well.
Ziggy/Lifeishard....
Ziggy, nothing new? Do you mean other than communication from a genuine person who is now in charge of FRC. Something I've not had for 5 years.
Its an opportunity for me to find out what's happened to my investment, and make enquiries with the company. I thought as genuine shareholders you would be pleased.
Tenners, All I asked was what questions you have asked directly, as again being a thicko like myself I only read your thoughts in a write up posted on this board? You haven’t responded to that or the name of the person, whom if is part of the Deloitte team dealing with FRC case, would surely welcome mail directed to them..? It is after all highly likely a set team will deal with said liquidation.
PS , I did say well done you for trying, just in case you missed that.
A bit like I have missed your positive news? At least Goit has not, so we await his/ her input on what I have missed and it seems Ziggy also has missed??
We arent in any different position to when looed gets a message and posts tbh. im more inclined to believe looed than a message from a liquidator as they presumably are only dealing with frc
frus has long gone from there
Lifeishard....
The email is direct to the Deloitte liquidation team. It would not be fair to name the particular member of staff who responded. Just mark up any correspondence to Mr Grant Hiley and Mr Michael Green, they ard the appointed joint investigators.
I'm sure you are not a thicko as you say, and I'm sure you can work out for the points I've raised from my earlier message.
Phil_2018 - You asked for my thoughts. If I understand the post by Tenners is correct, Tenners has received a standard reply from Deloitte. The rest of his post is a theory on events as he/she sees it or perhaps hope it was presented to Deloitte.
I do not think Delottie have validated / invalidated his theory, just provided a contact point as per standard practice in a liquidation. The rest remains a theory.
Ziggy / Looed, thanks for putting your input in, I removed doubt by answering Goit, really look forward to reading his/her post on what we have missed